How much funding can be received?

Funds up to 2300000% of admissible expenses.

What is the deadline to apply?

The deadline to apply is 2025-07-22T14:00:00Z.

Who are the financial supporters of the ISED — Artificial intelligence (AI)?

ISED — Artificial intelligence (AI) is funded by Innovation, Science and Economic Development Canada (ISED)

What are ISED — Artificial intelligence (AI)'s eligibility criterias?

The applicant must be a Canadian company with a place of business in Canada. At least 80% of proposal costs must be Canadian goods or services. The applicant must own or hold exclusive rights to the innovation's intellectual property.

ISED — Artificial intelligence (AI)

Last Update: June 27, 2025

Canada

Supports testing innovative AI prototypes for Canadian government needs

ISED — Artificial intelligence (AI) at a glance

Eligible Funding

Max. $2,300,000

Timeline

Open Date : June 27, 2025
Closing date : July 22, 2025

Financing Type

Eligible Industries

Agriculture, forestry, fishing and hunting
Manufacturing
Transportation and warehousing
Information and cultural industries
Professional, scientific and technical services
Educational services
Health care and social assistance
Public administration

Grant Providers

Innovation, Science and Economic Development Canada (ISED)

Status

Open

Overview of the ISED — Artificial intelligence (AI) program

The Innovation, Science and Economic Development Canada (ISED) Artificial Intelligence (AI) Testing Stream provides up to $2,300,000 in funding to support the procurement, testing, and evaluation of late-stage pre-commercial AI and robotics prototypes in real-world government environments. Eligible activities include the development and deployment of innovative solutions addressing automation, advanced data processing, intelligent decision-making, sensor technology, and communications for federal priorities.

Financing terms and conditions

Standard Component: Financial assistance up to $1,100,000 CAD per project.
Military Component: Financial assistance up to $2,300,000 CAD per project.

Eligible projects & activities

Testing and evaluation of innovative artificial intelligence (AI) and robotic process automation (RPA) prototypes for government use.
Deployment and assessment of advanced sensor, surveillance, and communication technologies to enhance data collection and operational capabilities.
Development and implementation of AI-driven solutions for automating administrative workflows and improving decision-making processes.
Integration of multi-sensor data fusion, edge computing, and real-time data analysis technologies to support operational environments.
Prototyping advanced technologies for object detection, predictive maintenance, and secure data processing within government settings.

Examples of admissible projects:

$ 2,150,000

Testing a robotics platform for automated government mail sorting

$ 2,200,000

Testing a multi-sensor surveillance platform for public facility safety

$ 2,100,000

Deploying an AI object detection platform for border security screening

$ 2,290,000

Assessing AI-powered edge computing for real-time traffic analysis

$ 1,975,000

Implementing AI-driven workflow automation in federal archives

$ 2,225,000

Deploying an AI-based system for predictive maintenance in transit

Eligibility criteria of the ISED — Artificial intelligence (AI) program

The applicant must be a Canadian person or entity with a place of business in Canada that conducts permanent activities accessible during normal working hours.
At least 80% of the proposal’s costs must qualify as Canadian goods or services.
The applicant must own the Intellectual Property (IP) for the proposed innovation or hold an exclusive licence from a Canadian licensor.
The proposed innovation must not be commercially available on the market or previously sold on a commercial basis.
The majority of the applicant’s full-time equivalent employees, compensation, and senior executives must be based in Canada.

Who is eligible?

Canadian companies with pre-commercial innovative prototypes in artificial intelligence (AI), robotic process automation (RPA), and automated decision-making
Businesses developing advanced sensor and surveillance technologies
Firms specializing in multi-sensor fusion and data patterning technologies
Canadian enterprises advancing operational technology, IT infrastructure, or communication technologies
Small and medium-sized enterprises (SMEs) developing innovative solutions for government and military applications

Who is not eligible

Companies that are not Canadian offerors, meaning those without a permanent place of business in Canada.
Organizations whose proposal includes innovations that are already commercially available or have previously been sold on a commercial basis.
Businesses proposing an innovation that has already been awarded a contract under the Build in Canada Innovation Program (BCIP), the Canadian Innovation Commercialization Program (CICP), or the Innovative Solutions Canada (ISC) Testing Stream, unless specific conditions for reapplication are met.
Offerors not meeting the requirements for Canadian content (minimum 80% Canadian goods or services in the proposal).
Companies that do not own or have exclusive rights to the intellectual property (IP) of the proposed innovation.

Eligible expenses

Costs associated with the development and testing of late-stage pre-commercial prototypes in real-life operational environments.
Procurement of Canadian goods or Canadian services directly involved in the prototype testing process (minimum 80% of total proposal costs must be Canadian goods or services).
Expenses required to secure and maintain necessary certifications, licenses, and approvals to safely deploy and test the proposed innovation.
Personnel salaries and wages for Canadian employees and contractors involved in the prototype testing and operational deployment.
Costs related to risk assessment and the implementation of mitigation measures to ensure safety, security, and compliance during the operational test.

Eligible geographic areas

Companies with a permanent place of business in Canada and conducting activities within Canada.

Eligibility criteria of the ISED — Artificial intelligence (AI) program

Advancement over current state-of-the-art solutions (up to 40 points).
Suitability and robustness of the intellectual property (IP) strategy (up to 12 points).
Equity, diversity, and inclusion (EDI) benefits, based on established policies and measures (up to 12 points).
Credible and well-developed commercialization strategy (up to 32 points).
A minimum total score of 60 out of 96 points is required to qualify at the selection stage.

How to apply to the ISED — Artificial intelligence (AI) program

Verify eligibility and requirements

Review the call for proposals documentation and eligibility requirements
Determine if your innovation meets the eligibility and mandatory criteria
Understand the scope of the problems and desired outcomes

Prepare submission documents

Prepare detailed information on your innovation, demonstrating it meets at least one desired outcome
Gather all mandatory supporting documents, including proof of Canadian content and ownership
Ensure your prototype is ready for operational testing

Complete and submit application

Complete the online application form during the submission window (June 27, 2025 to July 22, 2025, 14:00 ET)
Attach all required documents and proposals
Ensure all sections are properly filled before submission

Await evaluation results

Wait for the review of your submission by the ISC evaluation panel
Respond promptly to any requests for additional information or clarifications
Monitor your provided contact for notifications regarding status updates

Receive contract and start testing

If successful, receive conditional qualification and a contract offer for prototype testing
Follow instructions to initiate contract and begin prototype testing phase

Additional information

The Pathway to Commercialization (PTC) allows eligible SMEs whose innovations reach market-readiness (TRL 9) after a Testing Stream contract to sell directly to the Government of Canada.
Innovations placed on the PTC source list may be available for government purchase for up to three years following successful assessment.
Participation in the PTC precludes eligibility for future Testing Stream contracts for the same innovation.
All proposals must clearly identify which specific outcomes they address from the call for proposals.

Contact Innovation, Science and Economic Development Canada (ISED)

TPSGC.PASICVoletessai-APISCTestingStream.PWGSC@tpsgc-pwgsc.gc.ca

Apply to this program

Financial support for technology innovations